Building your retirement doesn’t necessarily mean having to invest in a mega-corporation that doesn’t align with your beliefs. While tailored ETFs or mutual funds allow investors to target a particular market segment or industry, alternative IRA investments afford the unique opportunity to invest directly into socially conscious projects for those who are so inclined. Let’s examine some potential self-directed investment avenues that can prove lucrative to IRAs while upholding one’s personal values:
As part of the 2017 Tax Cuts and Jobs Act, the federal government created the “Opportunity Zone” designation for low-income areas in which individuals (or their IRAs) can invest and possibly garner tax-advantaged returns (per IRS.gov). By taking an equity stake in an Opportunity Fund that supports such a zone, your IRA can support a growing community without sacrificing the earning potential that your retirement needs.
Your retirement dollars can support renewable energy in a variety of ways. For example, an IRA could lease land to a renewable energy company for windmills or solar farms. It could also purchase mining rights to any of the many minerals needed to build solar panels.
If a fledgling company with a noble cause needs capital to get off the ground, your self-directed IRA can buy private stock or issue a private loan to help them along.
In truth, there are ways to apply a private equity, private lending, or real estate strategy to any of these and the countless other options that may exist. Through self-directed investing, you can build your retirement by providing direct financial support to companies and initiatives that may cultivate a genuine positive difference through their business endeavors. For more information about self-directed IRAs or your alternative investment options, please don’t hesitate to give us a call at 877-742-1270 or send us an e-mail at email@example.com.